Sometimes containers may be not returned within the agreed period by accident, operational mishaps, or even by wilful misuse.
As a first step, both parties should always attempt to solve the issue through mutual and open communication on xChange (ideally communicate in the chat). Oftentimes, providing clarity on the whereabouts of a given container as well as its expected ETA and any issues that impede swift redelivery, already helps the supplier to manage his fleet.
If a mutual resolution cannot be found, the following process (supported by xChange) starts: xChange supports the supplier in requesting an update from the user, xChange will not only use the chat but utilize all other means of communication available.
1. If the Supplier does not want to wait any longer for return but containers still used less than 365 days per Multiparty Agreement
- The Multiparty Agreement gives the supplier limited rights to claim the DRV of the container if the container is on lease for less than 365 days since pickup
- xChange still offers several options to communicate and negotiate with the user to enable faster redelivery or alternative ways to terminate the lease (e.g., buy-out).
- However, this is always a negotiation, hence also requires the agreement of the user
- If the user does not agree to any of the options, the supplier will have to wait 365 days to force a buy-out of the units. The return speed of the user will, of course, impact his public company rating and operational performance reviews.
- xChange offers below possible options to the supplier to solve the issue for leases < 365 days
|
Category |
Option |
Description |
|
Return |
Return to Current Location (by user) |
Where are the containers right now? Can the user return units to the current location? Can the supplier accept units in the current location? |
|
Return to “non-agreed” other locations (by user) |
Can the user return the containers to another location faster than the originally agreed locations? Can the Supplier accept them in any of the newly offered locations as well with user paying extra drop-off fee? |
|
|
Alternative User (Sub-Lease) |
If the user is not able to return the containers as agreed, user can consider finding another user to move the containers - essentially swapping out the lessee. The agreement of both the supplier and the user is required. Still, all previous responsibilities apply to the original user until handover. The supplier will be the original supplier, the new user will “take over the lease” |
|
|
Find a trucker to move the container to the agreed DO depot |
In case the units are in the correct location but in the wrong depot, xChange can support finding a trucking company for the user, if they can’t move the units themselves. The costs of trucking are on the user's account. |
|
|
Purchase |
(Lease) Purchase by User |
In case the supplier is able and willing to sell the containers, xChange will start the sale negotiation process
|
|
(Lease) Purchase by the third party |
In case the supplier is able and willing to sell the containers, but the user cannot or does not want to purchase the units, xChange can publish the units on the xChange Trading Marketplace for sale. |
Important: Until completion of any of the above options, the units remain “on-hire” and accrue per diem charges.
In case none of the above negotiable options can be executed or commonly agreed on, the supplier has to wait 365 days as per Multiparty Agreement to execute the last and final option.
2. Supplier does not want to wait any longer for return and containers are on lease for longer than 365 days
- As per Multiparty Agreement clause §15(b), the supplier has the right to invoice the user for the Depreciated Replacement Value (DRV) of the Equipment
- For the correct calculation of the DRV, xChange requires the Year of Manufacturing (YOM) of the units
- xChange will calculate the DRV and inform the user that he is contractually obliged to now pay the DRV
- Invoicing takes place via xChange payment handling - but is only paid out to the supplier once funds are received from the user
- Until completion of the payment, the units remain “on-hire” and accrue per diem charges
Comments
0 commentsPlease sign in to leave a comment.